bniv.v>f  Ill.  Library 

51 


COMMUNICATION. 


ON 


Car-Load  Ratbs, 


ADDRESSED  TO  THE 


Honorable  Board  of  Railroad  Commissioners 

OF  THE  STATE  OF  IOWA, 


BY 


PBTBR  NICHOLSON, 

f 

WHOLESALE  GROCER,  ST.  LOUIS,  MO. 


NOVEMBER  1st,  1885. 


To  ihe  Honorable  Board  of  Railroad  Commissioners  of  the 
State  of  Iowa. 

Gentlemen  : 

As  a  Wholesale  Grocer,  and  in  behalf  of  the  Wholesale 
Grocery  Merchants  of  St.  Louis,  of  whose  association  I  have 
the  honor  to  be  President,  I  beg  to  take  issue  with  you  on 
several  features  of  your  late  communication  addressed  to  the 
Joint  Western  Classification  Committee,  in  behalf  of  the  Iowa 
jobbers,  protesting  against  any  modification  of  existing  differ¬ 
ences  between  rates  on  car  load  and  less  than  car  load  ship¬ 
ments. 

As  a  citizen  and  a  merchant,  I  know  I  am  entitled  to  the 
right  of  comfetition  wherever  I  choose  to  seek  trade.  As  a 
merchant  I  know  the  car  load  rate  which  you  defend,  deprives 
me  and  every  other  St.  Louis  Wholesale  Grocery  Merchant 
of  that  right.  I  claim  that  the  present  differences  between 
the  car  load  and  less  than  car  load  rates  on  merchandise  sold 
by  wholesale  grocers,  are  not  justifiable  under  existing  condi¬ 
tions,  or  under  any  conditions  likely  to  obtain  in  ordinary 
transportation. 

If  they  are  justifiable,  why  have  not  the  railway  officials,  to 
whom  we  have  time  and  time  again  appealed,  said  so?  Why 
have  not  the  railway  officials  discovered  and  enunciated  facts 
or  theories  to  refute  our  claim  for  the  right  of  competition! 
Why  did  not  the  Western  Jobbers  and  your  honorable  Board 
long  ago  come  forward  and  make  an  effort  to  logically  con¬ 
test  our  right?  Why  has  the  question  been  allowed  to  remain 
unsettled  ? 

It  has  been  before  the  Classification  Committee  a  long  time, 
but  not  one  man  has  ever  attempted  to  defend  the  car  load 

rate  as  an  equity,  and  why?  Because  it  cannot  be  defended. 


—  3  — 


except  in  the  lobby,  by  threats  or  by  deals,  influence  or  other 
dishonorable  methods. 

Some  have  attempted  its  defense  on  sentimental  grounds, 
claiming  the  abolition  of  the  car  load  rate  will  increase  the 
cost  of  living.  They  know^  I  know  and  you  know^  such  a 
defense  coming  from  an  interested  jobber  is  hypocrisy  and 
only  a  cloak  for  their  desire  to  'profit  by  an  injustice.  Such  a 
defense  can  not  be  made  without  the  defender  appearing 
ignorant,  ridiculous  or  as  a  demagogue,  in  the  eyes  of  every 
one  familiar  with  the  percentage  which  the  transportation  of 
food  and  clothing  bears  to  retail  values. 

I  want  to  say  to  your  honorable  Board,  the  Wholesale 
Grocers  of  St.  Louis  have  not  asked  the  Missouri  Railway 
Commissioners  to  threaten  the  Classification  Committee. 
They  have  never  asked  the  Railway  Commissioners  to  inter¬ 
fere  in  the  matter  ;  why  ?  Because  they  know  they  are  right, 
and  sooner  or  later  the  right  will  triumph.  Every  communi¬ 
cation  to  the  committee  has  been  an  appeal  for  justice,  for 
the  simple  right  of  competition,  and  every  appeal  has  been 
supplemented  by  a  declaration  that  if  our  claim  is  not  just  it 
would  be  modified.  We  have  always  been  open  to  convic¬ 
tion,  and  are  now.  The  right  and  justice  of  our  claim  have 
never  been  logically  disputed  by  any  me7nber  oj  the  Classifi¬ 
cation  Committee  or  by  any  one  else. 

-  On  the  contrary  the  Classification  Committee  has  tacitly 
admitted  the  justice  of  our  claim,  as  the  proceedings  of  its 
meetings  will  show.  Take  the  resolution  passed  in  the  meet- 
ing  held  at  the  Southern  Hotel,  St.  Louis,  February  4,  1885  • 


t  - 


^1. 

D 

I'  ' 


"  ‘‘  Resolved^  That  it  is  the  sense  of  this  lyieeting^  that  no 

extremely  radical  abolition  of  the  car  load  rates  be  made^  but 

that  the  questions  pertaining  thereto  be  taken  up  in 
detail,  be  considered  and  decided  on  their  merits.” 

Let  me  ask  your  honorable  Board,  not  as  Railway  Com¬ 
missioners,  in  the  interest  of  the  Western  Jobber,  but  as  men 
free  from  prejudice,  if  the  resolution  does  not  mean  gradual 
emancipation  when  read  between  the  lines?  Did  not  the  rail¬ 
way  men  who  passed  that  resolution  know  the  differences  then 


—  4  — 


existing  were  excessive,  unjust  and  a  discrimination  against 
their  St.  Louis,  Chicago  and  Milwaukee  patrons?  In  con¬ 
sidering  the  import  of  that  resolution,  the  fact,  that  uj)wards 
of  siventy-five  “  Western  Jobbers'^'  were  registered  at  the 
Southern  Hotel  should  be  borne  in  mind,  and  notwithstand¬ 
ing  their  efforts  and  influence  the  justice  of  our  claim  was 
recognized.  Take  the  Denver  resolution  ;  it  reads  : 

“  Resolved,,  That  the  foint  Western  Classification  Com¬ 
mittee  consider  it  unadvisable  to  change  the  basis  of  the  exist¬ 
ing  classification  as  to  differences  between  car  loads  and  less 
quantities;  but  that  the  Association  does  not  by  the 
passage  of  this  resolution  intend  to  indorse  the  differ¬ 
ences  at  present  existing,  but  intend  from  time  to 
time  to  modify  and  amend  the  same  as  circumstances 
and  due  regard  for  the  interests  of  all  may  require.’^ 

At  the  “  Denver”  meeting  Chicago  had  one  representative, 
St.  Louis  none,  whilst  the  Western  Jobbers  were  represented 
by  delegations  from  the  larger  cities,  but  notwithstanding 
their  efforts  and  influence,  the  resolution  passed,  and  passed 
in  your  stronghold. 

Let  me  again  ask  your  honorable  Board,  if  oui  claim  had 
not  been  entirely  just  and  reasonable,  would  the  committee 
have  passed  that  resolution?  Could  Chicago’s  one  repre¬ 
sentative  have  saved  our  claim  from  absolute  repudiation 
.under  the  circumstances,  if  it  had  been  unjust  and  unreason¬ 
able?  If  our  claim  was  not  just  and  reasonable,  why  did  the 
committee  resolve  to  take  uf>  the  questions  in  detail  and  decide 
them  on  merit?  If  our  claim  was  unjust  and  unreasonable, 
why  was  the  committee  at  Denver  very  particular  to  state,  it 
did  not  indorse  the  differences?  Why  did  the  committee 
promise  “  to  modify  and  ametid  the  differences  from  time  to 
time  with  due  regard  for  the  interest  of  all  concerned  f  if  our 
claim  is  not  well  based? 

The  resolutions  passed  by  the  committee  at  St.  Louis  and 
Denver  are  excellent  and  satisfactory,  so  far  as  resolutions 
can  be ;  whilst  the  acts  of  the  committee  are  or  should  be 
highly  pleasing  to  the  one  interest  you  represent. 


I  ask  your  honorable  board  to  carefully  consider  the  reso~ 
lutions  and  the  actions  of  the  Classification  Committee.  Note 
how  entirely  inconsistent  they  are  with  each  other,  and  ac¬ 
cept  my  theory  for  the  inconsistency.  Arguing  from  a  gen¬ 
erality,  that  all  men  love  truth  and  will  do  right  if  allowed  to, 
(I  refer  to  the  educated,  intelligent  and  good  men,  not  to  the 
ignorant  and  depraved,)  it  appears  strange  the  Joint  Wes¬ 
tern  Classification  Committee  has  not  followed  the  trend  of 
its  resolutions.  I  can  only  account  for  their  failure  to  act 
consistently,  on  the  presumption  that  undue  influence  has 
been  brought  to  bear  upon  a  number  of  individual  members, 
sufficient  to  prevent  the  Committee  from  making  changes 
from  time  to  time  with  due  regard  for  the  interests  of  all 
concerned^  by  taking  the  questions  pertaining  to  the  aboli¬ 
tion  of  the  car  load  rate^  in  detail^  and  deciding  each  case  on 
its  merits. 

The  presumption  is  fair,  if  the  acts,  utterances  and  meth¬ 
ods  of  Western  Jobbers  are  considered.  Several  members  of 
the  Classification  Committee  have  openly  stated  no  mem¬ 
ber  of  the  Committee  would  dare  to  vote  for  the  abolition  of 
the  car  load  rate.  Why  should  such  a  feeling  exist  in  a  body 
of  men  employed  to  serve  communities  without  favor,  in  the 
interest  of  their  stockholders,  unless  adverse  legislation  or 
boycotting  had  been  threatened  or  intimated?  Who  would 
make  such  threats  or  intimations  but  the  Western  Jobbers  or 
their  representatives? 

Ever  since  the  car  load  rate  question  has  been  before  the 
Classification  Committee,  the  Western  Jobbers  have  attended 
every  meeting  in  force  ;  rarely  less  than  fifty,  frequently  near 
one  hundred,  spending  their  time  and  money,  and  for  what 
purpose?  To  defend  the  existing  differences  between  the 
rates  on  car  loads  and  lesser  quantities  of  merchandise,  know¬ 
ing  them  to  be  excessive  and  unjust.  If  the  differences  are 
correct  why  do  the  Western  Jobbers  spend  their  time  and 
money  dancing  attendance  upon  a  body  of  intelligent  and 
fair  minded  men,  presumably  capable  of  administering  the 
affairs  of  tljeir  respective  companies?  - 


—  6  — 


No  man,  except  an  attorney,  can  afford  to  openly  defend 
that  which  he  knows  to  be  an  injustice.  Retaliation  may 
extenuate  but  does  not  justify.  When  men  defend  an  injus¬ 
tice  as  a  right ;  ignorance,  personal  gain  or  demagogueism  is 
justly  attributed  as  the  motive.  No  man,  except  an  attorney, 
can  sacrifice  his  sense  of  right  and  justice  for  his  personal 
benefit  without,  sooner  or  later,  incurring  disaster  or  ruin. 
Judas  Iscariot  did  so.  So  did  Benedict  Arnold.  Recent 
political  history  is  full  of  lessons  teaching  every  man  to  care- 
fully  avoid  the  defense  of  any  measure,  the  truth  and  justice 
of  which  he  doubts,  or  warp  his  judgment  to  suit  a  popular 
error  or  a  faction. 

In  your  communication  to  the  Joint  Western  Classification 
Committee  (reported  in  the  Chicago  Tribune^  Oct.  3d,  1885) 
you  state  railways  carrying  for  hire  were  to  be  regarded  as 
merchants  selling  transportation^  and  may  properly  be  gov¬ 
erned  by  the  same  rules  in  disposing  of  their  service  as  gov¬ 
ern  all  other  sellers  in  the  market.  Such  ruling  may  be 
reasonable  in  Iowa.  It  does  not,  however,  accord  with  the 
constitution  and  law  of  Missouri.  Nor  do  I  believe  rul¬ 
ing  will  remove  Iowa  railways  from  the  list  of  common  car¬ 
riers  and  vest  them  with  the  rights  of  individuals  or  private 
corporations.  I  admit  such  a  law  would  be  acceptable  to 
some  of  the  railways  of  your  state,  and  if  your  commission 
can  “  deliver  the  goods,”  I  have  no  doubt  you  could  now 
make  a  trade  that  would  bar  our  right,  if  your  jurisdiction 
extended  to  the  southern  boundary  of  Missouri.  If  the  Iowa 
statutes  justify  the  ruling,  I  can  see  no  possible  use  for  a 
railway  commission.  If  such  a  law  will  be  passed,  your  use¬ 
fulness  as  Commissioners  will  cease  at  its  passage.  If  the 
integrity  of  }our  honorable  board  could  be  questioned,  I  would 
attribute  the  utterance  or  ruling  to  an  unworthy  motive. 

Your  defense  of  the  car  load  rate  on  the  Wholesale-Retail 
principle  will  not  stand.  Intelligent  and  thinking  railway 
men  now  consider,  the  Wholesale-Retail  principle  exists 
mainly  in  the  haul,  and  does  not  exist  to  any  appreciable 
extent  in  the  classification.  The  Wholesale-Retail  principle 
is  fully  set  forth  by  the  Transportation  Committee  of  the  Mer- 


—  7  — 


chants’  Exchange  of  St.  Louis,  in  a  communication  to  the 
Joint  Western  Classification  Committee.  I  believe  the  rail- 

f 

way  men  do  not  question  or  dispute  that  the  Wholesale-Re¬ 
tail  principle  is  not  applicable  to  classification  further  than 
admitted  in  the  pamphlet.  No  one  questions  its  existence  in 
the  haul,  but  as  the  Classification  Committee  does  not  con¬ 
sider  questions  of  haul,  further  comment  on  the  application  of 
the  Wholesale-Retail  principle  to  classification  is  unnecessary. 

Your  assertion  that  until  recently  no  one  doubted  the  gen¬ 
eral  correctness  of  the  Wholesale-Retail  principle  is  virtually 
contradicted  by  the  Committee's  St.  Louis  resolution.  The 
large  following  of  Western  Jobbers  on  the  classification  meet¬ 
ing  implied  that  they  themselves  had  serious  doubts  as  to  the 
correctness  of  the  differences,  if  not  of  the  Wholesale-Retail 
principle  itself.  If,  as  you  state,  the  general  correctness  of 
the  principle  has  not  been  questioned  until  recently,  it  simply 
demonstrates  a  truth  has  been  discovered  and  is  finding 
friends  and  advocates.  I  believe  the  newly  discovered  truth 
is  rapidly  gaining  strength  and  will  soon  assert  itself,  despite 

the  efforts  and  influence  of  all  the  Western  Jobbers,  even 

when  aided  by  fallacies  and  threats  from  Railway  Commis¬ 
sioners. 

You  cite  the  fact  that  the  “  Granger”  laws  of  Iowa  recog¬ 
nize  the  car  load  rate  and  in  the  next  paragraph  refer  to  their 
repeal.  Permit  me  to  ask,  why  were  they  repealed?  Were 
they  not  defective?  Harsh?  Unjust?  Were  they  not  pass¬ 
ed  by  an  anti-railway  element  in  a  heat  of  passion?  Did 
they  admit  that  any  railway  corporation  had  a  right  which  any 
one  was  morally  or  legally  bound  to  respect?  Did  the  rail¬ 
ways  observe  them  when  it  did  not  suit  their  convenience  to 
do  so?  If  my  information  is  correct,  they  did  not;  and  if 
they  did  not  respect  them  when  in  force,  will  they  heed  their 
tenets  now? 

The  fact  that  they  were  repealed  implies  they  were  defect¬ 
ive,  or  inoperative,  and  weakens  the  car  load  feature  of 
your  present  law.  If  the  five  car  load  principle  is  good  in 
Colorado,  it  should  be  good  in  Iowa.  Why  does  not  Iowa 


—  8  — 


adopt  it,  or  go  further,  and  make  a  ten  car  load  law?  Why 
not  carry  it  up  into  the  hundred  or  thousand  car  load,  as  the 
Illinois  Legislature  did  in  establishing  the  coal  rates  in  that 
state,  and  throw  the  business  of  the  territory  tributary  to  each 
railway  into  the  hands  of  one  man  or  a  syndicate?  Such  a  law 
would  suit  the  middlemen  of  Iowa,  but  I  guarantee  the 
monopoly  would  not  have  the  approval  of  producers  or  ship¬ 
pers,  not  members  of  the  “  ring.'' 

The  car  load  question  is  not  understood  by  the  retailers  and 
consumers  of  Iowa.  They  have  heard  the  Western  Jobbers’ 
side  of  the  story,  and  your  cry  of  disaster  and  ruin.  They 
may  now  indorse  the  car  load  rate,  but  I  guarantee  a  change 
of  sentiment  among  the  retailers  and  their  customers ;  the 
consumers,  after  they  have  digested  certain  truths  which  the 
Associated  Wholesale  Grocers  of  St.  Louis  will  place  in  their 
hands  later  on.  It  will  be  demonstrated  how  the  car  load  rate 
has  deprived  them  of  the  benefits  of  competition.  How  it  has 
forced  the  retailers  to  buy  at  points  prescribed  by  the  railways. 
How  it  forces  them  to  fay  Chicago  or  St.  Louis  f  rices  y  -plus 
the  less  than  car  load  rates.,  and  sometimes  a  little  more. 
Indisputable  proofs  in  the  way  of  invoices,  etc.,  etc.,  will  be 
furnished  ;  in  short,  the  truth  will  be  told.  It  will  be  shown 
just  how  a  few  Western  Jobbers  are  benefitted.  How  they 
“  absorb”  the  difference  between  the  car  load  and  less  than 
car  load  rate,  which  properly  belongs  to  the  consumers  or  the 
railways.  It  will  be  shown  how  the  car  load  rate  enables 
Western  Jobbers  to  make  a  greater  percentage  of  profit  than 
they  are  entitled  to,  or  would  make  if  compelled  to  compete 
with  St.  Louis,  Chicago,  Milwaukee  and  eastern  cities.  One 
prominent  railway  official,  member  of  the  Classification  Com¬ 
mittee,  has  written  about  the  car  load  rate,  and  says:  “// 
makes  the  rich  7nan  richer.,  and  the  poor  man  poorer."  A 
gentleman  formerly  connected  with  a  prominent  western  road 
and  the  committee,  has  written  :  “  The  car  load  rate  benefits 

no  one  but  the  Western  Jobbers."  This  is  expert  testimony, 
and  will  weigh  heavily  against  fallacious  theories  when  your 
honorable  board  reports  the  accomplished  act  of  gross  in- 


—  9  — 


justice  to  the  General  Assembly,  and  we  may  force  an  ac¬ 
knowledgement  of  an  unbecoming  error.  Your  advocacy  of 
the  car  load  rate  may  be  political  suicide. 

You  state,  the  railways  have  not  the  moral  or  legal  right  to 
abolish  the  car  load  rate.  If  Iowa  Jobbers  are  in  possession 
of  contracts  signed  by  the  railway  officials  for  the  perpetua¬ 
tion  of  the  car  load  rate,  I  will  admit  the  railways  have  no 
legal  right  to  abolish  it.  As  to  the  other  (moral)  right,  it  is 
generally  conceded  that  railways  are  corporations  without 
souls  and  not  susceptible  to  moral  influences,  except  when 
they  are  profitable.  My  observation  is,  that  commercial  en¬ 
terprises  are  not  based  upon  the  faith  of  railways  continuing  a 
definite  policy  indefinitely.  Careful  investors  prefer  specific 
contracts,  and  make  them  when  the  success  of  an  enterprise 
hinges  upon  transportation. 

You  state  that  railways  are  not  tnerely  earners  of  dividends 
but  servants  of  the  great  public.  Is  not  your  ruling  some¬ 
what  inconsistent  with  the  other,  that  they  should  be  con¬ 
sidered  merchants  selling  transportation,  etc.,  etc.?  If  the 
railways  are  servants  of  the  great  public,  will  not  your 
honorable  board  admit  they  owe  the  citizen  or  citizens  of  Ill¬ 
inois  as  much  as  they  do  those  of  lowai  Do  they  not  owe 
Chicago  and  Milwaukee  as  much  as  they  do  Des  Moines  in 
the  transportation  oj  inter-state  traffic^  and  St.  Louis  as  much 
as  Kansas  City  or  St.  foseph  in  the  transportation  of  intra¬ 
state  traffic? 

You  state,  the  population  of  Iowa  solely  employed  in  agri¬ 
cultural  pursuits  will  not  in  the  future  rapidly  increase,  and 
convey  the  impression  that  the  abolition  of  the  car  load  rate 
will  abolish  the  Iowa  Jobbers.  If  my  inference  is  correct, 
permit  me  to  ask  :  By  what  means  do  the  jobbers  of  dry 
goods,  hats,  caps,  boots,  shoes  and  clothing  prosper?  There 
are  no  car  load  rates  in  those  lines  of  trade.  The  grocery, 
hardware  and  drug  men  are  certainly  as  intelligent  and  ener¬ 
getic  ;  they  have  the  same  advantages  in  geographical  posi¬ 
tion,  and  there  is  no  reason  why  they  should  not  continue 
business,  if  they  will  be  satisfied  with  legitimate  profits.  If 


—  10  — 


the  Wholesale-Retail  principle  is  correct  and  necessary  for 
the  prosperity  of  the  grocery,  hardware  and  drug  jobbers, 
your  official  obligations  should  compel  you  to  report  the  rail¬ 
way’s  failure  to  apply  it  to  dry  goods,  boots  and  shoes,  etc., 
as  an  accomplished  act  of  gross  injustice.  By  so  doing,  you 
would  be  consistent,  increase  the  number  of  people  dependent 
upon  the  jobbing  interest,  and  enlarge  your  following  The 
Classification  Committee  might  take  favorable  action,  but  I 
fear  the  well  known  prosperity  of  unprotected  interests  would 
outweigh  the  Wholesale  and  Retail  principle,  which  you  state 
should  apply  to  every  railway  transaction. 

You  state  it  is  the  undoubted  intention  to  follow  our  suc¬ 
cess  with  an  attack  upon  the  manufacturing  interests.  In 
this  you  are  wholly  and  totally  incorrect.  The  utterance  is 
unworthy  of  a  state  official,  and  I  trust  that  you  will  withdraw 
or  modify  it,  as  no  such  movement  is  contemplated  by  St. 
Louis. 

You  state  Chicago  and  St.  Louis  should  be  satisfied  with 
what  nature  has  done  for  them,  with  the  advantages  of  their 
position.  Permit  me  to  state,  the  Associated  Grocers  of  St. 
Louis  are  satisfied  with  what  nature  has  done  for  them,  with 
the  advantages  of  position,  and  add  that  we  shall  insist  upon 
the  Western  Jobbers  relying  entirely  upon  what  nature  has 
done  for  them,  with  the  advantages  of  position,  and  not  upon 
the  railway  protection  given  them  at  our  expense. 

The  St.  Louis  grocery,  drug  and  hardware  merchants  are 
to-day  contending  for  that  which  nature  gave  them.  •  Nature's 
gifts  have  been  taken  from  them  by  the  railways.  Our  pur¬ 
pose  is  to  have  them  restored,  even  if  the  “  time-honor ed’’’’ 
Wholesale- Retail  law  of  trade.,  as  applied  to  classification,  is 
overthrown.  If  it  is,  it  will  not  be  the  first  instance  of  budding 
truth  shocking  the  faithful  by  failing  to  honor  hoary  wrong. 
I  hope  it  will  not  be  the  last. 

Somewhere  about  eighty  years  ago.  Great  Britain  abolished 
a  ''^time-honored  law  of  trade  j  and  traffic  in  human  beings 
became  illegal.  Later  on,  this  “  time-honored  law  of  trade' 
was  by  act  of  Parliament  called  piracy.  Fifty  years  ago,  a 


^  ¥ 


—  11 


-  •  •  ' 


British  subject  engaged  in  the  slave  trade  was  transported  for 
life  if  caught.  Even  after  Great  Britain  abolished  the  slave 
trade,  it  remained  “<2  time-honored  law  of  trade]'  in  America. 
The  time-honored  law  which  protected  human  slavery  in  this 
country  was  overthrown,  and  very  few  now  regret  the  emanci¬ 
pation  proclamation.  If  time-honored  laws  had  been  held 
sacred,  John  Jasper's  theory  that  “  The  sun  do  move,”  would 
to-day  be  accepted  as  correct.  Socrates  was  poisoned  out  of 
respect  for  “  time-honored"  theories.  Columbus  would  never 
have  discovered  America  had  he  had  the  respect  for  time- 
honored  theories  which  your  honorable  Board  evinces.  I 
presume  if  the  “Granger”  laws  of  Iowa  had  not  been 
repealed,  the  gentlemen  comprising  your  honorable  Board 
would  indorse  them  right  or  wrong,  and  ask  the  railways  to 
accept  them,  because  they  would  now  be  time-honor edf 
Truth  and  justice  do  not  require  the  indorsement  of  time. 
Fallacy  does.  Respect  for  that  which  has  only  time's  indorse¬ 
ment  will  halt  even  Iowa’s  progress. 

You  state,  your  board  has  endeavored  to  harmonize  the 
interests  of  the  railways  and  the  people,  etc.,  etc.  You  also 
state,  if  the  change  is  made,  you  will  show  it  to  the  Assembly 
and  the  'peofle^  as  an  accom-plished  act  of  gross  injustice. 
The  two  statements  are  inconsistent.  Your  efforts  in  the 
direction  of  harmony  are  laudable,  and  I  am  glad  to  learn 
that  you  have  been  moderately  successful,  but  I  fear  that  your 
promised  effort  to  create  discord  will  prove  abortive.  The 
repeal  of  the  “Granger'’  laws  was  undoubtely  due  to  an 
awakening  by  the  people  of  Iowa  to  the  truth  that  ihe  inter¬ 
ests  of  the  people  and  the  railways  are  mutual.  That  Iowa’s 
progress  is  largely  due  to  her  railways— that  the  restrictions 
of  the  “  Granger”  laws  were  errors — the  deductions  are  rea¬ 
sonable.  It  is  uncomplimentary  to  the  people  of  your  State 
to  assume,  they  are  not  now  better  posted  on  the  relations 
between  the  railways  and  the  people  than  when  the  “  Granger” 
laws  were  repealed.  The  people  of  every  State  are  studying 
the  transportation  problem,  and  are  not  liable  to  be  misled  by 
sophistry.  They  will  continue  the  study,  and  by  the  time 


U.  Of  lU,  UB. 


—  12  — 


your  report  of  the  accomplished  act  of  gross  injustice  reaches 
the  Assembly,  the  people  of  Iowa  will  be  competent  to  cor¬ 
rectly  pass  upon  the  merits  of  the  Wholesale-Retail  principle 
as  applied  to  classification.  The  railway’s  defence  will  be 
understood,  and  your  honorable  Board  may  have  to  change 
front  or  stand  in  opposition  to  the  majority.  The  intelligent 
retailers  and  consumers  outnumber  the  jobbers. 

The  railway  officials  may  misconstrue  your  conclusion  as  a 
threat;  if  so,  you  have  not  strengthened  your  case.  If  the 
railway  men  do  so  construe  it,  and  conclude  that  your  hon¬ 
orable  Board  will  do  its  utmost  to  create  trouble,  whether  their 
actions  are  right  or  wrong ;  they  will  either  resign  and  give 
you  absolute  control  of  the  roads,  or  follow  the  dictates  of 
their  judgment,  and  depend  upon  the  intelligence  of  the 
Assembly  for  protection  against  a  commission  apparently  in 
the  interest  of  a  faction. 

From  your  communication  I  judge  you  do  not  understand 
the  nature  of  our  appeal.  St,  Louis  merchants  do  uot  ask 
the  abolition  of  the  car  load  rate;  they  admit  that  every  ar¬ 
ticle  in  the  classification  should  have  a  car  load  rate,,  hut  they 
insist  that  the  less  than  car  load  rate  shall  not  be  higher  than 
the  car  load  rate  by  more  thaii  an  a^nount  sufiicient  to  compen¬ 
sate  carriers  for  the  cost  of  extra  'way-billing  and  handling 
and  for  any  loss  of  space  in  cars  or  any  additional  risk  inci- 
derit  to  shipping  in  less  than  car  loads  that  does  not  obtain  in 
the  shipynent  of  straight  car  loads.  The  application  of  that 
principle  in  classification  will  give  the  railways,  on  any 
specified  amount  of  tonnage  between  any  two  points,  the 
same  net  revenue,  whether  shipped  in  straight  or  mixed  car 
loads,  and  any  competent  lawyer  will  not  say  a  railway  is 
entitled  to  more.  The  principle  entirely  accords  with  express¬ 
ions  made  before  the  Missouri  Railway  Commissioners  at 
Jefferson  City,  in  my  presence,  by  representatives  of  the 
leading  wholesale  houses  of  Kansas  City  and  St.  Joseph. 

Mr.  Shoup,  representing  the  St.  Joseph  Board  of  Trade, 
in  discussing  the  principle  above  set  forth,  used  the  following 
language  :  “  I  have  an  opinion  as  to  the  justice  of  the  resolu- 


—  13  — 


tion.  As  far  as  the  wording  is  concerned^  I  have  not,  nor  has 
any  gentleynan  in  our  -party,  any  objection  to  it.  This  admis¬ 
sion  was  made  after  the  St.  Joseph  and  Kansas  City  repre¬ 
sentatives  had  had  the  question  under  consideration  during  an 
adjournment  lasting  an  hour  and  a  half.  It  is  needless  to 
say  their  failure  to  take  exceptions  to  the  principle,  when  the 
adjournment  w'as  had  for  that  puprose,  gives  it  their  approval. 
If  the  wording  is  capable  of  two  constructions,  the  Classifica¬ 
tion  Committee  are  competent  to  decide  Jhe  fact 

If  the  principle  has  the  approval  of  Kansas  City  and  St. 
St.  Joseph  merchants,  why  can  not  your  Commission  ap¬ 
prove  it?  If  Kansas  City,  St,  foseph.  Council  Bluffs, 
Oynaha,  Des  Moines,  Denver,  Minyieapolis  and  Si.  Paul 
were  a  unit  at  St.  Louis,  Denver  and  St.  Paut  why  not, 
at  fefferson  City? 

At  the  St.  Paul  meeting  of  the  Joint  Western  Classification 
Committee,  the  Western  Jobbers’  Association,  which  I  believe 
voiced  the  sentiments  of  Iowa  Jobbers,  passed  and  filed  with 
the  Classification  Committee,  a  resolution  protesting  against 
any  change  in  existing  differences  between  the  car  load  and 
less  than  car  load  rates,  of  which  the  following  is  a  part: 
^'•Resolved,  That  we  will  sustain  the  Transportation  Com¬ 
panies  in  all  honest  and  legitimate  efforts  to  serve  the  peopje, 
in  the  maintenance  of  just  and  equitable  rates,  tO  the  end 
that  all  classes  may  have  fair  and  open  competition 
for  the  commerce  of  the  country.”  That  portion  of  the 
resolution's  fair  and  just,  and  will  have  the  approval  of  every 
fair  minded  merchant  between  the  Atlantic  and  Pacific  oceans. 

In  behalf  of  the  Associated  Wholesale  Grocers  of  St.  Louis, 
I  will  subscribe  to  it,  and  1  believe  every  opponent  of  the  car 
load  rate  will  do  likewise.  Fair  and  open  competition  for 
the  commerce  of  the  country  is  all  we  want,  all  we  ask.  If 
your  commission,  any  western  jobber,  or  the  Joint  Western 
Classification  Committee  can  demonstrate  that  more  is  asked, 
do  so,  and  the  St.  Louis  Grocers  will  modify  their  claim. 

Inasmuch  as  your  commission  is  now  the  acknowledged 
representative  of  Iowa  Jobbers,  I  trust  that  you  will  take  a 


—  14  — 


liberal  and  just  view  of  the  car  load  question,  and  amend  your 
communication  to  the  Classification  Committee.  Can  you 
not,  in  effect,  say  to  the  Committee  :  “  Gentlemen —  We  believe 
the  -present  Joint  Western  Classification  is  a  benefit  to  all  the 
peop>le  of  lowa^  and  apparently  accords  with  our  understand- 
ing  of  the  true  principles  of  transportation.  It  has  the 
indorsejnent  of  our  laws  a7id  the  Colorado  law.  It  has 
worked  well  in  the  past,,  but  if  it  does  not  give  all  classes  fair 
and  open  competition  for  the  com7ner  ce  of  the  country,,  7nake 
such  changes  as  in  your  judg7ne7it  are  necessary ,  a7id  if,  after 
careful  mvestigation  of  the  results  of  your  changes,  we  find 
that  afiy  citize7i  of  Iowa  is  deprived  of  the  ri^ht  of  fair  and 
open  co7npetition  for  the  com7nerce  of  the  country,  or  that  the 
change  is  detritnental  to  the  7}iajority  of  consu7ners,  we  shall 
ask  you  to  restore  the  car  load  rate,  and  if  you  do  not  C07nply 
with  our  request  we  shall  co7isider  the  change  a  gross  injus¬ 
tice,  and  so  show  it  to  the  General  Assetnbly  a7id  the  people!'^ 
You  might  add  that  Iowa  Jobbers  will  be  satisfied  with  what 
nature  has  given  thetn  ;  with  the  advantages  of  position  and 
even  rates. 

Such  a  communication  would  reserve  for  you  the  right  of 
protest  and  leave  you  free  from  the  odium  of  a  threat.  It 
w#uld,  I  think,  be  entirely  consistent  with  your  past  record 
as  promoters  of  peace  and  harmony,  serve  the  Iowa  Jobbing 
interest  as  well,  your  own  and  the  people’s  better. 

The  Missouri  Railway  Commissioners  are  on  record.  They 
have  made  a  careful  study  of  the  car  load  rate  question,  and 
have  used  the  following  language  in  a  communication  ad¬ 
dressed  to  the  Missouri  Railways:  '‘*‘So  far  as  the  Joint 
Western  Classification  is  concerned,  the  Railway  Co7nmiss- 
ioners  of  Missouri,  both  itidividually  and  collectively ,  una7ii- 
lyiously  disapprove  of  sotne  of  its  i77iporta7it  features,  amo7ig 
which  is  dual  classification  {a7id  of  course  two  rates')  on  too 
great  a  variety  of  articles.  W©  think  the  car  load  rates 
properly  apply  only  to  such  articles  as  do  not  mix 
with  other  articles  without  injury,  and  are  hardly 
excusable  in  any  other  case.”  This  sentiment  was  reiter- 


—  15  — 


ated  as  late  as  September  22d,  1885.  In  considering  the  con¬ 
clusion  of  the  Missouri  Commissioners,  the  existence  of  two 
opposing  interests  in  this  state  should  be  considered. 

The  car  load  question  has  heretofore  been  a  dispute  between 
St.  Louis,  Chicago  and  Milwaukee  on  one  side,  the  Western 
Jobbers  on  the  other,  with  the  railways  in  a  semi  neutral  posi¬ 
tion  ;  but  your  communication  lo  the  Committee  will,  in  all 
probability,  make  it  an  issue  between  the  railways  and  the 
Railway  Commissioners  of  four  states,  Colorado,  Iowa,  Mis¬ 
souri  and  Illinois.  I  trust  that  it  will  not  become  an  issue  in 
the  states  named,  as  I  believe  the  railways  can  settle  it  if  our 
opponents  stand  by  their  St.  Paul  resolution  and  support  the 
railways  in  all  honest  and  legitimate  efforts  that  will  give  all 
classes  fair  and  open  coynpetition  for  the  commerce  of  the 
country.  If  the  railways  do  not  do  that  in  the  revision  of  the 
classification,  St.  Louis  merchants  must  necessarily  follow 
the  example  of  Iowa  Jobbers  and  appeal  to  the  Missouri  Rail¬ 
way  Commissioners. 

I  have  mentioned  that  your  honorable  board  might  bar  us 
from  “  open  and  fair  competition”  if  your  jurisdiction  extend¬ 
ed  to  the  southern  boundary  of  the  state,  and  will  now  point 
out  how  the  advantages  of  our  position  will  serve  us. 

I  will  assume,  for  sake  of  illustration,  that  your  protest  will 
have  every  effect  you  desire.  St.  Louis  will  appeal  to  the 
Missouri  Commissioners,  who,  in  accordance  with  their 
expressed  convictions,  will  make  a  state  classification  with 
one  rate  for  articles  that  can  be  loaded  together  without 
injury;  this  would  include  almost  every  article  in  the  Gro¬ 
cery,  Drug  and  Hardware  lines.  The  Missouri  Classification, 
to  be  effective  against  the  Joint  Western,  would  have  to  apply 
the  present  car  load  rate  to  less  than  car  load  shipments.  It 
would  apply  between  St.  Louis  and  Kansas  City  and. St. 
Joseph,  leaving  those  points  without  protection,  and  give  St. 
Louis  reduced  rates  to  every  point  in  Kansas,  Colorado, 
Nebraska,  Arizona  and  New  Mexico,  reached  by  roads 
leading  from  Kansas  City  or  St.  Joseph.  Under  a  “  thne 
honored^ ^  custom  the  rates  from  St.  Louis,  plus  agreed  differ- 


ences,  would .  apply  from  Chicago,  Milwaukee  and  every 
point  east  of  the  Mississippi  river.  Under  another  “  time 
honored  ”  custom  the  rates  current  from  St.  Louis  and  Chi¬ 
cago  to  Kansas  City  and  St.  Joseph  would  be  claimed  by  and 
be  given  to  Atchison,  Leavenworth,  Council  Bluffs  and  Om¬ 
aha,  and  it  would  not  be  long  before  central  Iowa  points 
would  be  asking  for  just  and  equitable  rates,  in  order  to  have 
open  and  fair  competition.  What  would  be  the  result?  The 
Iowa  Jobbers  would  lose  their  railway  protection  despite  any 
action  you  could  take.  ^  Iowa  w^ould  be  opened  to  the  open 
and  fair  competition  of  all  classes,  and  her  Jobbers  would 
have  to  be  satisfied  with  what  nature  has  given  the^n;  the  ad¬ 
vantages  of  position^  and  depend  upon  their  energy. 

I  think  you  will  admit  we  have  the  advantage  of  position. 
Whether  we  use  it  or  not  depends  upon  the  action  of  the 
Classification  Committee,  and  their  action  is  largely  depend¬ 
ent  on  the  position  your  honorable  Board  will  take.  If  the 
Classification  Committee  takes  no  action  in  November,  I  shall 
look  upon  your  communication  as  fortunate,  as  it  justifies 
St.  Louis  grocers  in  going  to  our  Commissioners,  without 
further  parley. 

In  all  earnestness,  I  again  ask  you  to  amend  your  com¬ 
munication,  so  as  to  allow  the  Classification  Committee  to 
take  up  and  settle  the  question  on  its  merits,  as  they  have 
promised  to.  The  question  must  be  met,  and  met  as  a  busi¬ 
ness  proposition ;  not  as^a  sentiment,  or  matter  of  policy.  I 
know  the  St.  Louis  merchants  desire  the  railways  to  settle 
the  question  without  State  interference,  and  I  trust  your  hon¬ 
orable  Board  has  the  same  desire,  as  every  intelligent  man 
knows  that  strife  between  railvva}^s  and  the  people  is  not  con¬ 
ducive  to  prosperity. 

Very  respectfully  yours, 

PETER  NICHOLSON, 


St.  Louis,  Mo.,  Oct..^  iS85* 


Wholesale  Grocer. 


